This past Tuesday at the annual CM Summit hosted by Federated Media as part of Internet Week, Marcy Shinder, VP of Brand Strategy & Marketing at American Express OPEN (M Booth client), credited small business owners with inventing “social networking” long ago in the off-line universe. Shinder pointed out that for small business owners, “success has always relied on their ability to connect with others for advice, support and networking.”

It is this very essence of the SBO that would make them natural adopters of the type of social networking occurring on-line. But are SBOs making the switch and taking their old-fashioned methods to today’s digital space?

A recent article in the NY Times reports that most small businesses have not yet fully embraced social networks, but their numbers are growing. The article goes on to reference data from a recent study commissioned by Sage North America which found that that 65% of small businesses currently on social networking sites said that they felt more comfortable doing so this year than last year. In total, more than 260,000 North American businesses currently use social networking to promote their businesses, according to the “North America Small Business Social Networking Study.”

Furthermore, SBOs aren’t just limiting themselves to connecting on Facebook, LinkedIn and Twitter. Nearly 40% of business owners are increasingly tapping other niche sites (i.e. women entrepreneurs) that have been sprouting around the web, looking for more tailored and cost-effective marketing and networking opportunities to build their businesses during the economic downturn. Using the CM Summit as a launching pad, Shinder unveiled the new OPEN Forum 2.0, currently in beta and scheduled to go live Q3 2009, to the sold-out audience of tech savvy and innovation leading entrepreneurs. The revamped social networking site combines its popular small business content from some of the top bloggers in the space, with a greater focus on connections through the new “Connectodex” feature. Shinder described “Connectodex” as an online tool that is designed to connect OPEN Forum members with companies that offer complimentary services and expertise.

Perhaps most appealing about what the new OPEN Forum site promises to offer is its focus on bridging the gap for many SBOs who have a high business relationship IQ, but need to boost their social media IQ. Many of the conversations that will take place on OPEN Forum will be geared toward educating today’s entrepreneur about the power of social media to grow their business. Rob King, VP for strategic marketing at Sage North America, said it best in the NY Times piece,  “small businesses have a 12-month window to figure out online social networking…I hate to say it, but if they don’t, they’ll get left in the dust.”

- Danny

Our social media-savvy client American Express OPEN, along with Count Me In for Women’s Economic Independence, the leading national not-for-profit provider of business resources and community support for women entrepreneurs, have announced the launch of the Make Mine a Million $ Business RACE (M3 RACE) – a year-long business growth marathon bringing together thousands of women entrepreneurs to network online and compete in a race to grow their businesses and create jobs in the United States.

The M3 RACE inspires women to challenge themselves and each other to realize their vision for the company and reach their revenue targets. Just like walk/run marathons, women can choose their own pace for their 2009 business revenue goal: $250,000, $500,000, or $1,000,000 or more. The Grand Prize winner will receive a $100,000 cash prize and a year of marketing, advertising and media opportunities.

By leveraging social networking and creating an innovative online business growth assessment tool specific to the needs and challenges of women business owners, the 2009 M3 RACE initiative will extend its reach to thousands of women across the country.

- Danny